On August 31, 2017, Carrizo entered into an agreement to sell substantially all of its assets in the Utica Shale, located primarily in Guernsey County, OH, for $62 million in cash, subject to customary closing conditions. Additionally, Carrizo could receive contingent payments of up to $15 million in aggregate based on average annual WTI prices exceeding certain thresholds over the next three years. The effective date of the transaction is April 1, 2017, and the transaction is currently expected to close by October 31, 2017.
S.P. “Chip” Johnson, IV, Carrizo’s President and CEO, commented, “While we cannot yet fully quantify the impact of Hurricane Harvey given potential damage to third party midstream and refining assets along the Gulf Coast, we are pleased to report that our employees are safe and our assets were not damaged. I’d like to commend our staff for their effort and dedication leading up to the storm as well as in the days following it. As a result, our team was able to return to drilling and completion operations with limited downtime as well as finalize the sale of our Utica Shale package while also dealing with the personal aftermath of this historic storm. As a Houston-based company, our thoughts continue to be with our employees as well as our neighbors and the many other Texans who were impacted by Hurricane Harvey and are dealing with very difficult conditions.”Read the whole release here.
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